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Old 05-20-2008, 07:34 PM
 
11,715 posts, read 36,670,103 times
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Quote:
Originally Posted by motoman View Post
How do they get qualified for mortgages? Those kinds of ratios aren't even allowed.
Stated income loans
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Old 05-20-2008, 08:06 PM
 
2,197 posts, read 6,812,671 times
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Yep, AKA liar loans.

But some lenders were offering loans with 50% ratios for people with good credit and low debt even last year. People also get 40-year IO loans to qualify for more. Amazingly, some of these products are still available-- or were just a few months ago. When all this creative financing goes away, a lot of people won't be able to stretch into these homes. It will be especially difficult in L.A., because so many people are self-employed. When you maximize your deductions for tax purposes, it totally screws you for mortgage qualification. Without a stated income or high ratio loan, it's tough for creative types to qualify. That's why I can't believe the prices aren't coming down more on the Westside. Everybody can't be that rich or have that much equity to roll over. Can they?
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Old 05-21-2008, 02:19 AM
 
1,831 posts, read 4,864,972 times
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Quote:
Originally Posted by motoman View Post
You can't compare today to two World Wars, with a Great Depression squeezed in. Not to mention the utter lack of sophistication of the financial markets during that time relative to today.
With the utter stupidity and humongous losses that have been taken on these loans ... I kind of find it hard to believe that the markets are that much more sophisticated today.


Last edited by sheri257; 05-21-2008 at 02:50 AM..
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Old 05-21-2008, 02:44 AM
 
1,831 posts, read 4,864,972 times
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Quote:
Originally Posted by EscapeCalifornia View Post
This could be the approach of the bottom or a dead cat bounce that'll lure more suckers to their financial doom.
I wonder who made up that expression "dead cat bounce" anyway ... LOL.

Regardless ... here's the latest data.

DQNews - DataQuick Real Estate Headlines and Statistics

Whether it's a dead cat or the real deal ... demand has picked up a bit ... as I suspected.

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Old 05-21-2008, 08:26 AM
 
830 posts, read 2,618,777 times
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Quote:
Originally Posted by sheri257 View Post
With the utter stupidity and humongous losses that have been taken on these loans ... I kind of find it hard to believe that the markets are that much more sophisticated today.


Indeed. Indeed. Perhaps I should have qualified that statement.

The market's structure and sophistication have certainly advanced, with computers, the opening up of worldwide markets, and such. But yes, unfortunately, many of the people running those markets are still, well, bubblicious idiots.
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Old 05-21-2008, 08:29 AM
 
830 posts, read 2,618,777 times
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Quote:
Originally Posted by sheri257 View Post
I wonder who made up that expression "dead cat bounce" anyway ... LOL.

Regardless ... here's the latest data.

DQNews - DataQuick Real Estate Headlines and Statistics

Whether it's a dead cat or the real deal ... demand has picked up a bit ... as I suspected.


One month does not a trend make. Let's revisit this in the fourth quarter as many of the resets in the second and third quarters go into foreclosure.

There is also an article on that link showing foreclosures are already at a 15 year high. And they are just going to get worse for at least another 6-9 months, perhaps a year.
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Old 05-21-2008, 09:21 AM
 
1,868 posts, read 5,295,904 times
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Quote:
Originally Posted by motoman View Post
One month does not a trend make. Let's revisit this in the fourth quarter as many of the resets in the second and third quarters go into foreclosure.

There is also an article on that link showing foreclosures are already at a 15 year high. And they are just going to get worse for at least another 6-9 months, perhaps a year.
Exactly!..... In addition to the comment regarding sophistication, you can add complication....developments in secondary financial markets , structured products, hedge funds, private equity, and the lack of transparency in accounting procedures tend to murky the waters...I think we have a long way to go.
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Old 05-21-2008, 02:29 PM
 
148 posts, read 435,830 times
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Quote:
Originally Posted by JTGJR View Post
Rightly or wrongly, I'm beginning to hear "analysts" saying the bottom is within the next few months. 22% increase in home sales (mostly foreclosures) from March to April, but still far below last April.

So, all you folks trying to time the bottom, start paying close attention.
Thanks for that. I saw the uptick in numbers month over month, as well as the large jump in new housing starts - oops! but the jump was all in multi-family and rental housing. Surprise, surprise.

Anyone know which, if any, of the banks in the Southland are being reasonable with their REO and foreclosure prices? And would be willing to share that info readily with potential buyers, at any branch? Or do I have to go through an agent/realtor? Or can I just walk into a Countrywide branch and ask the loan officer for listings?

I've seen plenty of crap online for the inland areas and low income places like Compton or South LA/Watts - foreclosures, REO's, etc., but I would like to be able to see full REO and foreclosure listings/info by searching zip code, city, etc. without hassles like signing up for spam or bogus, old foreclosure listings you have to pay for.
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Old 05-21-2008, 03:32 PM
 
Location: Santa Monica
4,708 posts, read 7,837,064 times
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Quote:
Originally Posted by motoman View Post
There is also an article on that link showing foreclosures are already at a 15 year high. And they are just going to get worse for at least another 6-9 months, perhaps a year.

Not if there is significant Federal action later in 2008 to aid homeowners.
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Old 05-21-2008, 03:56 PM
 
1,868 posts, read 5,295,904 times
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Quote:
Originally Posted by ParkTwain View Post
Not if there is significant Federal action later in 2008 to aid homeowners.
I have a feeling that IF that goes through it's only going to help a small percentage....people are in way to deep at this point.
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